The issuance of currency by commercial banks was admitted recently by the People's Bank of South Tyrol (Banca Popolare dell’Alto Adige) in real estate enforcement proceedings 216/2014.

The judge in that case held that this practice is effective and legitimate, by writing, in the order 7/6/16:

"As, however, a breach of Article 127 (ex Article 105) of the European Union's founding treaty, we do not understand why the creation of money through the banking system may violate that provision, which has nothing to that effect, as it is absolutely irrelevant the reference to article 10 banking Act, which does not prohibit such a system, since in any case the Euro is a coin that is not representative, it is not required a value for each printed ticket as the era of the gold standard ... ".

The bank had declared:"The Maastricht Treaty does not reserve the ECB money creation, but literally the issue of (euro denominated) banknotes and minting of coins. The Italian Civil Code does not recognize banknotes and coins at the only legal tender (if it was that, according to anti-money laundering legislation, it would have prohibited any deal providing for the payment of a price equal to or more than € 3,000; similar limits are also in place in most countries of European Union).

Banca Popolare dell’Alto Adige does just what the art. 10 TUB provides, namely the collection of savings (anyone can open at any time a savings account or open a bank account) and the provision of credit (like the claimant know, Banca Popolare actually grants loans and credit facilities).

The "money creation" by the commercial banks, the existence of "book money", the phenomenon of "fractional reserve" are completely legitimate features of our economic and monetary system and an expression of freedom of contract. If a bank makes a loan to a customer, we have a simple phenomenon of expansion of the balance sheet ( "Bilanzverlängerung")."

The problem, however, rest in the accounting of the very same process of money creation by the banks: Cash Flow Statements don't account for money creation today.

In the Italian Civil Court of Genoa, on August 18, 2016, there was a hearing in the case on the failure to take account of the creation of money by Banca Carige.

The Carige attorney is Paolo CANEPA (brother of the magistrate Anna CANEPA, the "Magistratura Democratica" union secretary), from the law firm ROPPO & CANEPA, who had attended DE BENEDETTI in the case of the LODO MONDADORI against Silvio BERLUSCONI, the former Italian PM.

The lawyer asked that the case be estopped for total groundlessness, invoking the temerity of the counterparty. The Court refers to the next hearing, October 4, 2016 at 10.15 AM, ahead of Hon. Luigi COSTANZO, President of the Chamber as well as Deputy Chairman of the Court, to decide on the appointment of a forensic accounting expert.

The lawyer Marco DELLA LUNA, representing the plaintiff, constituted by a British financial company and Marco SABA, argues that the emergence of the revenues from the creation of money by commercial banks, in the case of CARIGE more than euro 25 billion, as well as to rehabilitation of the Italian banking system, would lead - through subsequent taxation - to the safety of the Italian state budget.

A question arises: if everything is in order, why the management of the Genoa bank CARIGE is opposed to the inquiry?

CARIGE Bank: the Court of Genova have been asked to set a curator

Genova, October 20, 2016

Third hearing at the Court of Genova on the mismanagement of accounting for money creation at Carige Bank. Lawyer Marco Della Luna has asked to the Judge Hon. Costanzo to set a special curator for the bank because a conflict of interest between the bank's administrators and the property of the bank on the matter of money creation accounting. The Court reserves to decide on the request for a curator in the next few days. No Italian media is actually covering this ground-breaking case.